For a family of four, the total price of groceries per month (in the United States) over four years is displayed in the table. Year Cost of Groceries per Month 1 $1,130 2 $1,165 3 $1,200 4 $1,285 Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If the inflation rate dropped unexpectedly by 2.5%, indicate for each of the following whether the economic actor is helped, hurt, or unaffected and explain your reasoning. A union member with a COLA wage contract Someone with a large stash of cash in a safe deposit box A bank lending money at a fixed rate of interest A person who is not due to receive a pay raise for another 11 months Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the CPI would be more appropriate than using the GDP deflator to convert from nominal to real.